Repsol: Strategic Plan 2016-2020

11
VALUE & RESILIENCE2016-2020
October 15th, 2015

2
ALL RIGHTS ARE RESERVED
© REPSOL, S.A. 2015
Repsol, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied,
distributed or introduced into a retrieval system of any nature or transmitted in any form or by any means without the prior written permission of Repsol,
S.A.
This document does not constitute an offer or invitation to purchase or subscribe shares, in accordance with the provisions of the Spanish Securities
Market Law (Law 24/1988, of July 28, as amended and restated) and its implementing regulations. In addition, this document does not constitute an offer
of purchase, sale or exchange, nor a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.
Some of the resources mentioned in this document do not constitute proved reserves and will be recognized as such when they comply with the formal
conditions required by the U.S. Securities and Exchange Commission.
This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent,
belief, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol’s financial condition,
financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs
savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and
other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words
“expects”, “anticipates”, “forecasts”, “believes”, estimates”, “notices” and similar expressions. These statements are not guarantees of future
performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be
beyond Repsol’s control or may be difficult to predict. Within those risks are those factors and circumstances described in the filings made by Repsol
and its affiliates with the Comisión Nacional del Mercado de Valores in Spain and with any other supervisory authority of those markets where the
securities issued by Repsol and/or its affiliates are listed.
Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the
projected performance, conditions or events expressed or implied therein will not be realized.
The information contained in the document has not been verified or revised by the Auditors of Repsol.

3
Strategic Plan 2016-2020: Agenda
2012-2016 Strategic Plan delivery
Key strategic lines 2016-2020: Value & Resilience
Financial outlook
Summary

4
Financial outlook
Summary

55
2012-2015 Milestones
2012-2016 Strategic Plan: Growth and Delivery
YPF expropriation
2012 2013 2014 2015
Cartagena & Petronor
refineries upgrade
Discoveries: Pão de
Açucar and Sagari
Start-ups: Margarita &
Mid Continent
LNG business
divestment
Start-ups: Carabobo and
Sapinhoa
Discoveries: Brazil,
Alaska and Russia
YPF settlement
and full monetization
New CEO appointment
Discoveries: T&T and
Gulf of Mexico
Start-up: Kinteroni
Talisman
Acquisition
Hybrid bonds
issuance
Start-up: Perla
Extraordinary dividend
2012-2016
Strategic Plan delivery

66
• Upstream as growth engine
• Reserves Replacement
High growth in
Upstream
Maximize
Downstream
profitability
Competitive
shareholder
compensation
Financial
strength
CAGR>7%
Prod 2016 ~500 kboepd
RRR > 120%
€1.2 B/y
€0.7 B/y
Stable dividend of
€1/share
Self-financed
Maintain investment grade
>25%/y (1)
~650 kboepd
190% (2011-2014)
€1.3 B/y (2)
€0.7 B/y (2)
~€1/share per year (3)
Extraordinary dividend in 2014
Leverage increase
(Talisman acquisition)
Achieved
2012-2016 Strategic Plan targets achieved
// Targets // // Delivery //
1. 25% CAGR estimated with 2015 production of 650 kboed (average daily production with Talisman integrated all year). Organic growth with a CAGR of ~7% excluding Lybia's impact (3% with it).
2. Downstream figures do not include any LNG business figures.
3. Dividend paid of €1/share every year with scrip dividend option. Extraordinary dividend of €1/share paid in 2014 after YPF agreement compensation.
• Maximize profitability and cash
• Fully-invested assets
• Competitive pay-out ratio
• Dividend ~ €1/share
• Self-financed plan
• Commitment to maintain
investment grade
2012-2016

77
Repsol today
An integrated company operating across the entire value chain
~650 kboepd
production
~2.2 billion boe
proved reserves
~1 million bpd
refining capacity
Core businesses:
Upstream and Downstream
Non-operated
shareholding: GNF
Integrated
business model
Tier 1 Downstream
Diversified and global
portfolio
World-class explorer
Capable and
talented workforce
Delivery on
commitments
// Talisman acquisition //
May 2015: closing
2012-2016
• Transformative deal with a long-term view
• Competitive multiples: EV/2P reserves ~$10/bbl
• E&P portfolio and competitiveness upgrade
• Global scale and diversification
• Generates new oportunities
• Enhanced value-creation capabilities

8
Financial outlook
Summary

99
VALUE
Shift from growth to value
delivery, prepared
for the next growth wave
Commitment to maintain
shareholder compensation
in line with current company level
RESILIENCE
Top tier resilience among
integrated companies
Self-financing strategy even in a
stress scenario
PORTFOLIO MANAGEMENT
Capex flexibility
Creating value through portfolio
management
EFFICIENCY
Synergies and company-wide
Efficiency Program
with strict accountability:
Creating value even in a stress scenario through efficiency and portfolio management
FCF breakeven after dividends at
$50/bbl Brent
€2.1 B/y savings
(€1.5 B Opex + €0.6 B Capex)
(~40% Capex reduction vs. 2014)
(€6.2 B divestments)
Key strategic lines 2016-2020
Key strategic lines 2016-2020:
Value & Resilience

10
2016 2017 2018 2019 2020
Brent price ($/bbl) 65.0 75.0 85.0 90.0 91.8
Henry Hub price ($/Mbtu) 3.5 4.0 4.6 4.7 4.8
Repsol refining margin indicator ($/bbl) 6.4
Scenario assumptions
Stress scenario 2016-2020
$50/bbl flat
Brent price
Base scenario 2016-2020
$3.5/Mbtu flat
Henry Hub price
$6.4/bbl flat
Repsol refining
margin indicator
Value & Resilience

11
// Upstream production evolution //
0
1,000
800
600
400
200
x2
2020Portfolio
management
2020
organic
production
20162014
kboepd
• Achieved critical mass in E&P business
• Extensive portfolio of assets and
development projects
• Optionality to improve portfolio value by
divestments
Achieving optimal size and portfolio mix
Value & Resilience Shift from growth to value

12
0
2
4
6
8
2. Repsol and Talisman were two separate companies in 2014. In 2015 there are effects
of the combined company. Figures include proportional share of JVs.
3. Exploration expense includes G&G and G&A.
+
// Group annual Capex (1) //
2018-20202016-20172014 (2)
• Upstream assets in an advanced stage of investment
• Limited presence in capital-intensive new developments
• High share of unconventionals (price responsive Capex)
• Investment portfolio prioritization after Talisman integration
• Exploration with limited commitments
o Expense (3) reduced from ~$2.1 B/y (2011-2014)
to ~$0.9 B/y (2016-2020)
• Low Downstream capital requirements
1. All figures in dollars using an exchange rate of $/€ 1.1 for the whole period.
Capex does not include G&G and G&A from exploration, includes efficiency program.
High flexibility to manage investments
38%
35%
$B
ExplorationDownstream & Corporation Production & development
Value & Resilience Capex reduction as a key lever

13
€1 B in divestments commitment, after
Talisman acquisition, fully achieved(1)
Finding natural owners of assets willing
to pay full value
• 2015 CLH and piped LPG divestments
Sales focus on assets not linked to oil prices,
subscale and high-cost/ high-breakeven
positions to improve portfolio value
• With time flexibility to sell at right price
✓
✓
✓
1. Sale of CLH and piped LPG in 2015.
2. Sale of piped LPG to generate €0.7 B (€0.1 B in 2015 and €0.6 B to be accounted for 2016.)
Enlarged portfolio allows divestments
// Asset divestment plan of €3.1 B in 2016-2017
and €3.1 B in 2018-2020 //
zCreating value and strengthening balance sheet
Value & Resilience
0
1
2
3
4
3.1
2016-2017
0.6 (2)
2.5
€B
2018-2020

1414
Synergies and Efficiency Program to reach €2.1 B/y in 2018
Strict accountability on Efficiency Program delivery for the management team
New Efficiency
Program
50% of Opex savings already under implementation
Reduction of 1,500 Group employees already announced
Synergies €0.3 B
• Savings from combining the organizations
• Benefits from enhanced portfolio
• Other savings
€0.5 B
• Capture of cost deflation
• Efficiency improvement
• Cultural change
€0.6 B
€0.5 B
• Integration value maximization
• Operational optimization
• Reliability of industrial facilities
€0.2 B
• Optimization of key support functions
• Simplification: focus on value creation
€1.5 B €0.6 B
// 2018 Opex impact //
Upstream
Opex & Capex
efficiency
Corporation
right-sizing
Downstream
profit improvement
and efficiency
// 2018 Capex impact //
Value & Resilience

1515
• Workforce and contractors reduction from overlaps
• Removal of duplications in general services, helpdesk
support, communications, office events, etc.
• Removal of duplicate boards/committees and
external services
• Cost of debt savings from joint financial optimization
• Improved liquids commercialization from Talisman
production using Repsol trading capabilities
Synergies from Talisman integration are
already being delivered
// Integration synergies // // Selected examples //
0
100
200
300
400
$M/y
New target
2018
Target on deal
announcement
Already implemented Identified and launched to reach new 2018 target
+ $130 M/y
$220 M/y
$350 M/y
New synergies target of $350 M/y by 2018
(Raised from $220 M/y at the time of the acquisition announcement)
>30% of synergies already implemented
Value & Resilience

16
1. Scenario used to estimate breakevens of HH $3.5/Mbtu and Repsol refining margin indicator of $6.4/bbl, both flat from 2016 to 2020. Breakeven does not include any proceeds from
divestments, with the exception of the piped LPG sale already accomplished (piped LPG sale of €0.7 B in September 2015, with €0.6 B to be accounted for in 2016).
2. Sensitivities: With HH at $3/Mbtu (instead of $3.5/Mbtu) breakeven increases an average of $2/bbl. With refining margin indicator at $5/bbl (instead of $6.4/bbl) breakeven increases an
average of $5/bbl.
~50(2)
0
15
30
45
60
2016-2017
~60
2018-2020
// Group FCF breakeven (1) after dividends // // Upstream FCF breakeven (1) //
~45
0
20
40
60
80
2016-2017 2018-2020
~75
~60
$/bbl $/bbl
(av. 2016-2020)
Resilience: $50/bbl free cash flow breakeven after dividend
Breakevens
Value & Resilience

17
0
20
40
60
80
1. Wood Mackenzie data except for Downstream business.
2. Majors: Exxon, Statoil, Shell, Chevron, BP and Total.
3. Integrated companies: OMV, ENI.
4. Pure E&P: Chesapeake, Anadarko, Apache, Devon, Oxy, EOG and CNRL.
// Company FCF breakeven in 2016 (after dividends)(1) //
Repsol’s FCF breakeven reduction capacity well
positioned within industry
Repsol's strong Downstream significantly contributes to lowering breakeven
Exploration provides high flexibility to reduce breakeven
$/bbl
Pure E&P(4)Integrated
companies(3)
Majors(2)Repsol
Rest of businessesDownstream cash generation Exploration 2016 breakeven after dividends
Value & Resilience

18
0
5
10
15
20
25
30
35
~32
Investments (3)
~10
Divestments
~23
Operating cash
flow post tax
~6~5
Financial expenses Cash for dividend
and debt
€B
// Cash movements 2016-2020 (accumulated) //
(Stress scenario)(1)
1. Scenario used (stress): Brent $50/bbl, HH $3.5/Mbtu and Repsol refining margin indicator of $6.4/bbl, from 2016 to 2020.
2. Base case scenario starting at Brent = $65/bbl and HH = $3.5/Mbtu in 2016, increasing to $75/bbl and $4.0/Mbtu in 2017, $85/bbl and $4.6/Mbtu in 2018, $90/bbl and $4.7/Mbtu
in 2019 and $91.8/bbl and $4.8/Mbtu in 2020, with a constant refining margin of $6.4/bbl.
3.From the ~€23 B investments, ~€19 B are from Upstream and ~€4 B from Downstream.
4. FCF sensitivities (5 years accumulated): Brent +$5/bbl = €1.5 B; HH +$0.5/Mbtu = €0.7 B; Repsol refining margin indicator +$1/bbl = €1.1 B.
Cash for
dividend and debt
in base scenario (2)
~€20 B
Self-financed Strategic Plan even under the stress scenario ($50/bbl flat)
Self-financed Strategic Plan
Value & Resilience
(4)

19
Upstream Downstream Corporation

2020
// Strategic positioning //
• Lower Capex intensity and
improved value
• More resilient with FCF Upstream
breakeven down to ~$75/bbl in
2016-2017 and ~$60/bbl in 2018-2020
• Geographically and play-type focused
(3 regions, 3 play types)
• Production scaled at 700-750 kboepd
sustained by the right reserve base
// Starting point //
(Repsol + Talisman)
• Broad geographic footprint
with some subscale positions
• Long pipeline of organic
growth opportunities
• Unconventionals portfolio
Upstream strategy 2016-2020
Efficiency
Program
Portfolio
management
• Exploration optimization
• Investment rationalization
• Divestments
Value & Resilience
• Opex
• Capex

21
Production 2016: ~85 kboepd
Operatorship: ~37%
Gas production (2016): 77%
• Self-financed growth
• Relationship with
governments/NOCs
• High potential
exploration blocks
SouthEast Asia: FCF & GrowthLatin America: FCF
Operatorship: ~20%
• Regional scale
• Exploration track record
• Cultural fit
3 core regions in the portfolio
North America: Growth
Operatorship: ~79%
• Unconventional portfolio
• Operatorship
• Valuable midstream positions
Value & Resilience

22
An extensive pipeline of organic opportunities
Brazil
Lapa
(former Carioca)
Sapinhoa
(former Guara)
Latin America
M. - Huacaya
(Bolivia)
Carabobo – AEP
(Venezuela)
Cardon IV
(Venezuela)
Akacias
(Colombia)
Kinteroni + Sagari
(Peru)
Mid-continent
(USA)
North America
Eagle Ford
(USA)
Marcellus
(USA)
Duvernay
(Canada)
SouthEast Asia
Red Emperor
(Vietnam)
C. & J. Merang
(Indonesia)
PM3, Kinabalu
(Malaysia)
SANECO /
TNO / SK
Russia
Reggane
(Algeria)
Africa & Europe
MonArb
(UK)
WI: ~89%
WI: 100% WI: ~11% WI: 15%
WI: 15%
FO NE end 2016
FO SW 2019
WI: 37.5% WI: 11% WI: 45%WI: 53.8%WI: 50%
WI: 29.25%
First gas 2017
WI: 30%
Redevelopment
WI: 46.8%
FO: 2018
WI: 36% C /
25% JM
WI:41.4-35 PM3
WI: 60% K
WI: 49%
Contingent resources
• Brazil: Campos-33, Albacora Leste,
Sagitario
• Russia: Karabashky
• Colombia: CPO9 & Niscota
• Alaska: Colville High
• GOM: Buckskin & Leon
• Indonesia: Sakakemang
• Vietnam: Red Emperor extension
• Kurdistan
• Unconventional North America
• PNG: PDL10
Prospective resources
• Brazil: Santos Basin & Espirito Santo
• Colombia: RC11, RC12 & Tayrona
• Unconventional North America
• GOM
• Peru
• Guyana
• Angola
• Romania
• Portugal
• Norway
• Indonesia
• Malaysia
• Vietnam
• PNG: gas aggregated project
• Bulgaria
// Exploration //
“As is” organic portfolio potential of more than 900 kboepd
WI: ~31% in
basin
and 50% in JV
Value & Resilience

23
Portfolio management: Production
// 2020 Production ~700-750 kboepd // // Focus: 3 regions, 3 play types //
Offshore shallow
33%
Onshore core plays
35%
Non-operated
Offshore deep
9%
Unconventional
23%
Production 2016-2020
~90% of production from core areas (2016-2020)
North
America
Latin
America
SouthEast
Asia
1,000
800
600
400
200
0
kboed
20202014
Portfolio
management
A larger and more focused E&P portfolio
Value & Resilience
20202014

24
0
1
2
3
4
5
6
7
2016-2020
$B
2014(2)
ExplorationDevelopment & production
• Development Capex reduction based on value
optimization:
o Fulfill contractual minimum commitments
o Slowdown of projects with lower value
o Modulate unconventional Capex to oil price
• Exploration Capex reduction while ensuring
sustained resource additions
o Focus on core regions/plays
o Reduce highest-cost development exposure
• Divestment of non-core assets
+
Portfolio management: Capex
// Capex reduction 2016-2020 //
(Average annual Capex) (1)
// Capex prioritization driven
by value and strategic fit //
~40%
1. Not including G&G and G&A from exploration and including efficiencies.
2.Figures include proportional share of JVs.
Reduction in Capex while preserving value
Value & Resilience

25
0
500
1000
1500
2000
2500
3000
Proved
reserves
@Dec15
Cummulative
production
2016-2020
Reserves
additions
2016-2020
Proved
reserves
@Dec20
Av. 2011-2014
(Repsol + Talisman)
0.9
2017-2020
1.0
2016
2.1
Exploration intensity
($/boe)
Portfolio management: Exploration
// Lower exploration intensity,
more focused, lower risk //
(Exploration expense)(1)
// Unconventionals will complement
exploration for reserve replacement //
8.8 3.9 3.2
1. Exploration expense include G&G/G&A. 2. Reserves replacement ratio.
$B/year
Lower exploration intensity needed for reserve replacement
0.5
1.0
1.5
2.0
0
Value & Resilience
RRR (2) ~100%
Unconventional
Conventional
500
1,500
2,000
2,500
0
1,000
3,000
Mboe

26
Production guaranteed with current reserves and resources
More than 80% of 2020 production coming from today’s reserves
// Production evolution //
0
200
400
600
800
2016 2020
kboepd
20152014
From Prospective resourcesFrom Reserves From Contingent resources
Value & Resilience

27
E&P Cost Efficiency Program
Focused on structural efficiency gains and industry deflation capture
• Technical standardization
• Operational uptime increase
• Procurement & logistics optimization
• Organizational right-sizing
Business units
(Opex & Operational Capex)
Large capital projects
Exploration
& drilling
Support
functions
• Post -FID projects: Efficiency gains, scope challenge
• Pre-FID projects: Lean and cost-efficient engineering and supply chain design,
collaborative approach with contractors, integrated project execution, …
• Simplification of geological targets, coring, testing
• Well design standardization
• Planning and execution efficiencies
• Procurement & logistics optimization
• Organizational right-sizing
• Ongoing analisis of added value for every task
• Organization right-sizing
• Optimize support functions
~$1.2 B/y
savings
by 2018
// Levers //
~$0.6 B/y
Capex
~$0.6 B/y
Opex
+
Value & Resilience

28
Under
implementation
Staff right-sizing
UK helicopters optimization
Transport optimization
in Trinidad & Tobago
Cost reduction program in well drilling
and completion by contract renegotiations
Optimization of helicopter use and
contracts renegotiation
✓
~$66 M Opex
✓
✓ ~$22 M Opex
Transfer of logistics base closer to
offshore platforms
~$3 M Opex
✓
Under
implementation
Under
implementation
Under
implementation
To be
launched
E&P Cost Efficiency Program
Selected examples of Upstream saving initiatives
✓Under
implementation
Cost reduction program in development
wells drilling in Akacias, Colombia
Akacias (Colombia) well
cost optimization ~$33 M Capex
Marcellus (US) well cost
optimization
~$7 M OpexUK maintenance contract
Optimizing offshore maintenance contracts
and renegotiation with suppliers ✓Under
implementation
// Initiative // // Description // // Status // // Yearly impact //
Value & Resilience
~$44 M OpexFirst wave of global headcount and cost reduction
Brazil efficiency program Program to reduce lifting and structural costs ~$49 M Capex

29
Value & Resilience E&P Cost Efficiency Program
UK transformation plan already delivering results
TSEUK approximate ownership (%)
Operation assets Late life assets (LLA)
// Complex network of operated production facilities //
Program implemented from 2014 delivering in 2015:
• After more than 10 years of decline, production to
increase 15% in 2015
• Reduction of 25% Capex & Opex vs. 2014
• 35% year-on-year reduction in unitary lifting costs
• Key MonArb development project realigned to deliver
additional production by mid-2017
Repsol drives a step-change involvement in the JV
and a new business plan:
New
Business Plan
Improve recovery factor
with new developments
Optimize
decommissioning
Fiscal
optimization
Operational efficiency
improvement
`

30
Capex
Upstream metrics improvement in 2016-2020
Commitments
Value
Efficiency
Resilience
// Opex & Capex savings //
2018
1.2
0.6
0.6
Capex
Opex
2018-2020
~60
2016-2017
~75
// Upstream FCF breakeven // // ROACE (2) increase //
2014 2016-2020
// Capex (1) //
~ 40%
1. Capex not including G&G and G&A cost from exploration.
2. ROACE increase figures estimated with the stress scenario.
$B
$B
$/bbl
Value & Resilience
2020
~5 p.p.
2.3
2.7
Efficiency
Portfolio
management
4.1
6.7

31

32
Downstream to provide sustainable value
Maximize
performance
• Taking advantage of the integration between refining and
marketing businesses with focus on reliability
Capital discipline
• Discipline in capital allocation
Margin improvement
&
Efficiency Program
• Optimizing integrated margin across businesses
Objective to generate FCF ~ €1.7 B/y (average 2016-2020)
• Divestments of non-core assets for value creation
• Strong focus on reducing energy cost and CO2 emissions
Value & Resilience

33
2016-2020 Downstream strategy: Maximizing value and cash
generation leveraged on fully invested assets
// Sustainable value from quality assets // // Investment discipline //
Note: Integrated R&M margin calculated as CCS/LIFO-Adjusted operating profit from the R&M segment divided by the total volume of crude processed (excludes petrochemicals business) of a 9-member peer group.
Based on annual reports and Repsol’s estimates. Source: Company filings.
Peers: 2015: Eni, Total, Cepsa, Galp, Saras, OMV, MOL, Neste Oil, Hellenic // 2014 and previous: Eni, Total, Cepsa, Galp, Saras, OMV, MOL, PKN Orlen, Hellenic.
-5
0
5
10
15
1H 201520112010 2012 2013 20142007
$/bbl
20092008
0.5
1.5
1.0
0.0
2.0
2012-20152005-2007 2016-2020
€B/y
2008-2011
Downstream resilience reinforced by commercial business
integration with industrial businesses
Cartagena and
Petronor projects
Repsol position
Repsol in leading position among european peers
Average investmentsEuropean Integrated Margin of R&M
D&A
Value & Resilience

34
0
2
4
6
8
10
2.7
Base Repsol refining margin indicator (1)
Additional margin from Cartagena and Petronor projects Efficiency initiatives pre-SP 2016-2020
1. Excluding margin from Cartagena and Petronor projects and efficiency improvement programs.
2. Start-up of Cartagena and Petronor projects in late 2011.
Repsol’s refining margin indicator evolution
Margins back to a mid cycle scenario
// Repsol’s refining margin indicator 2005-2020 //
2016-2020
6.4
3.0
0.7
2015
8.8
4.3
4.0
0.5
Low margins
2009-2014
1.5
High margins
2005-2008
1.5
6.6
~27%
3.0
~37%
$/bbl
Value & Resilience
6.6
(2)

35
 Lower oil and gas prices
 Average demand growth of 1.2% for 2016-2020 on top of strong 2015 demand
 Lower EU effective capacity due to low maintenance activity in recent years
 Capacity-addition delays and cancellations due to stressed cash position of
integrated companies and NOCs
 Restarts unlikely due to required investment in working capital and fixed costs
with long-term uncertainties remaining for less competitive refineries in EU
 Capacity additions offset by growing demand
 Marpol (1) increases diesel demand, while lowering fuel oil demand and price
Fundamentals support sustained Repsol refining margins
Light-Heavy
differentials
Demand vs. effective capacity
tighter than previous years
Refining project delays
and cancellations
Restarts unlikely in EU
European refineries at high
utilization of effective capacity
Growing refined
products demand
Lower Opex
 Spain fuels demand growth at 4% in 2015
 Low Brent-WTI and NBP-HH gaps and low $/€ exchange rate
 Large increase in production of heavy crudes
Value & Resilience
1 Marpol: International convention for the prevention of pollution from ships.

36
Refining
Commercial
businesses
Integrated
margin
Chemicals
• Energy cost reduction
• Optimization of integrated margin across the value
chain with: optimization of crackers supply, processing
challenging crude...
• Network structure optimization
• Operational improvement focused on raw material flexibility
and facilities reliability
// EBIT increase by 2018 //// Levers //// Projects //
~€250 M/y
~€100 M/y
~€100 M/y
~€50 M/y
Downstream efficiency and margin improvement program
Total target
of ~€0.5 B/y
• Optimization of pricing strategy
• Logistics and planning improvements
• Increased asphalt production in Peru
• Improved planning to increase crude supply flexibility
• Operations optimization including fixed-cost reductions
~€500 M/y from Downstream efficiency improvement
Value & Resilience

37
€41 M/y
Under
implementation
Minimize use of turbines, repair leaks, maximize
condensate return, optimize steam ratios and
pressures
Processing more
challenging crudes
Commercial plan for coke
Crackers: Flexibility
of raw material
Technical upgrades allowing reduced
consumption and improved safety of supply
Optimize coke trading and commercialization
✓ €9 M/y
Margin integration along the supply chain to
maximize CPC blend crude oil processing
(CPC contaminates LPG to be cracked by
chemicals) (1)
✓ €8 M/y
✓ €4 M/y
Introduce flexibility of raw material fed to
crackers, swapping Naphtha for LPG
€25 M/y
Petronor steam reduction ✓
Under
implementation
Under
implementation
Under
implementation
Selected examples: Downstream
To be launched
Cartagena
hot standby boilers
€2 M/yLogistics optimization
Optimization of the benzene logistics,
from road to railway, with further reduction of
emissions of CO2 by more than 800 t/y
✓Under
implementation
// Initiative // // Description // // Status // // Impact on EBIT //
1. Negative impact for Chemicals and LPG BUs but positive for Refining and Trading, with overall positive impact.
Value & Resilience

38
Efficiency
Program
1.7
1.3
// Improvement in EBIT //
~0.5
// Capex //
0.8
Avg. 2016-2020
0.8
2016-2020
>15%
// D&A //
Downstream metrics improvement in 2016-2020
Commitments
Value
Run-rate
Capex
Performance
improvement
€B €B/y
€B/y // FCF // // ROACE //
2018+ Avg. 2016-2020
Avg. 2016-2020Avg. 2012-2015
Value & Resilience

39

40
// Corporate costs //
Talisman adding ~ €0.4 B/year corporate cost that
will be offset by synergies and efficiency programs
Reduction of corporate cost in 3 years equivalent to entire Talisman corporation
Synergies from integration
Corporate Efficiency Program
+
Value & Resilience
1. Included in the $350 M/y synergies total target.
179
228
898
Efficiency
Program
Objective
1,305
Synergies (1)
€M/y
2015
500
1,000
0
1,500

41
Lost Time Injuries Frequency
Goal to achieve zero accidents by 2020
Strong commitment to total safety embedded
in the cost efficiency program
✓
✓
• Objective: 35% (2) reduction in 2020
1. Energy reduction for the 2014-2020 period.
2. 2020 objective referenced to 2010 CO2 levels.
• Efficiency programs ongoing to reduce
energy consumption by 12% (1)
• Cost of CO2 applied to all
investment decisions
Safety and Sustainability, a priority for the company
Carbon
pricing
Energy
efficiency
CO2
reduction
0
2
4
6
8
10
200420032002 2014201320122011201020092008200720062005
÷10
// Safety, a non-negotiable value in Repsol //// Carbon strategy – Facing the issues //
• 22% achieved by the end of 2014
Value & Resilience

4242
Gas Natural Fenosa strategic stake
Strong profitability with long term strategic vision
30% of valuable stake in a leading gas & power company
Stable dividend with growth potential
Provides strategic optionality for a stronger role of gas
in energy mix
Strong profitability performance
(well above wacc and not linked to oil price)
Group’s renewables platform
Liquid investment that provides financial optionality
Value & Resilience

43
Financial outlook
Summary

4444
Sound track record
in managing adverse
conditions
Resilient Plan with
stronger business profile
Conservative
financial policy
Financial outlook
Financial Strategic Plan 2016-2020
Commitment to maintain investment grade rating
Commitment to maintain shareholder compensation
in line with current company level
Commitment to reduce debt

4545
// 2016-2017 //
(2 years accumulated)
// 2018-2020 //
(3 years accumulated)
Capital structure actions driven by conservative financial
policy and investment-grade rating commitment
Efficiency
plans
Scrip dividend (2) €1.4 B €2.2 B
Synergies €0.3 B €1.0 B
Divestments €3.1 B €3.1 B
Opex €1.2 B €4.0 B
Capex €0.9 B €1.4 B
Hybrid issuance (1)
€3.0 B
Focus on early delivery in first two years (2016-2017)
1. Hybrid non-dilutive to shareholders. (50% equity content as considered by the rating agencies.)
2. Assumption for the Strategic Plan of 50% acceptance (historic level of acceptance >60%.)
Financial outlook

46
Financial outlook
Summary

47
Strategy 2016-2020: Value and Resilience
9
6
3
0
12 x2
5.4
11.5
Base scenario Stress scenario
x1.5
9
6
3
0
12
5.4
7.9
Synergies
and efficiency
Capex
flexibility
Active portfolio
management
Breakeven
€2.1 B/y
Up to 40%
700-750 kboed
€6.2 B
divestments
~$50/bbl
Pre-tax cash savings
by 2018 (Opex & Capex)
E&P FCF breakeven 2018+
2016-2020 Capex reduction
in Upstream vs. 2014
Opex Capex
€1.5 B €0.6 B
~$60/bbl
Group FCF breakeven
(post dividend) 2016-2020
2015E 2020 2015E 2020
// EBITDA(1) //
€B €B
Base scenario
~€20 B
Stress scenario
~€10 B
Summary
// Cash for Dividends & Debt (2016-2020) //
E&P and Downstream assets
1. EBITDA at CCS (Current Cost of Supplies.)

48
• Sound financial position
Summary
Repsol 2020
Repsol 2020: Leaner and more competitive
…and as always…delivering on our commitments
• Fully-integrated business model
• World-class explorer
• Optimized Upstream portfolio focused on core areas and play types
• Technical capabilities (unconventionals, operatorship...)
• Tier 1 Downstream
• Technology and know-how
• Safety & sustainability
• Highly-committed and talented workforce
• Track record of dealing with complex environments
• Highly efficient and resilient company
• Increasing earnings

4949
VALUE & RESILIENCE2016-2020
October 15th, 2015

Repsol: Strategic Plan 2016-2020

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